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Knowledge integration challenges when outsourcing manufacturing
University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Development, IT and Land Management. University of Gävle, Center for Logistics and Innovative Production. (Industriell ekonomi)ORCID iD: 0000-0001-8238-034X
Department of Management and Engineering, Linköping University, Sweden; Department of Industrial Economics and Management, KTH, Sweden.
University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Development, IT and Land Management. University of Gävle, Center for Logistics and Innovative Production. (Industriell ekonomi)
2011 (English)In: Knowledge integration and innovation: critical challenges facing international technology-based firms / [ed] Christian Berggren, Anna Bergek, Lars Bengtsson, Michael Hobday, and Jonas Söderlund, Oxford: Oxford University Press, 2011, 1Chapter in book (Refereed)
Abstract [en]

Industrial firms experience a strong tension between high demands to outsource manufacturing to low-cost regions and the need to integrate and co-locate key competencies in product development chains. The chapter explains this tension as a dynamic balance between knowledge integration (KI) requirements and capabilities. Three themes are discussed, illustrated by survey data and case studies. First, the chapter argues that parallel investments in manufacturing capability are valuable for meeting KI requirements derived from outsourcing manufacturing. Second, the analysis demonstrates how different kinds of outsourcing strategies shape the KI challenges. Third, the chapter shows how KI challenges turn up as hidden costs, performance trade-offs, or deteriorated cost reduction capability. The chapter claims that the lack of analysis of KI challenges is one explanation why previous studies on outsourcing effects have shown contradictory results. The chapter ends by suggesting the notion of manufacturing absorptive capacity for understanding KI challenges when outsourcing manufacturing.

Place, publisher, year, edition, pages
Oxford: Oxford University Press, 2011, 1.
Keyword [en]
Costs of outsourcing, Knowledge integration, Manufacturing absorptive capacity, Manufacturing strategy, Outsourcing, Performance
National Category
Mechanical Engineering
Identifiers
URN: urn:nbn:se:hig:diva-9695DOI: 10.1093/acprof:oso/9780199693924.003.0009Scopus ID: 2-s2.0-79961002592ISBN: 978-0-19-969392-4 (print)ISBN: 978-019173058-0 OAI: oai:DiVA.org:hig-9695DiVA: diva2:427708
Note

DOI: 10.1093/acprof:oso/9780199693924.001.0001 (volume)

Available from: 2011-06-28 Created: 2011-06-28 Last updated: 2017-01-10Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • harvard-cite-them-right
  • ieee
  • modern-language-association-8th-edition
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  • Other style
More styles
Language
  • sv-SE
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  • nn-NB
  • de-DE
  • Other locale
More languages
Output format
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